Balanced Partner Scorecards

The Extended Enterprise Delivered Latitude Fact Sheet Paths to Optimizing the Extended Enterprise Balanced Partner Scorecard A balanced partner scorecard can help the extended enterprise continuously optimize channel performance. A channel scorecard can ensure that partner activities support local and strategic objectives, and corporate and partner users can coordinate those activities using the same data. A complete scorecard must provide steps that guide partners to better performance. 1 A web-based partner scorecard can track performance metrics, such customer satisfaction, revenue, and market share and provide more visibility into the partner activities. A competently implemented partner scorecard provides many well-known technologically based benefits. For example, the scorecard provides a single pointof-truth where both the partner and manufacturer obtain a valid picture of where the partner stands regarding the key metrics. Any scorecard application must provide these basic benefits. A channel partner scorecard, however, provides more than operating efficiency (timely, accurate data). It creates better alignment between partner activities and the manufacturer’s corporate business objectives. To be transformational, a partner scorecard must operate in the context of a comprehensive performance improvement plan that: • Identifies the key performance metrics that align with business objectives • Provides a guided analysis to engage problem areas in more detail • Fosters greater cooperation in the extended enterprise A channel partner scorecard must make easily available data that is timely, accurate (technology-based benefits) and correlated to performance (information-based benefits). Latitude Consulting Group 888-577-2797 www.latitudecg.com LATITUDE FACT SHEET Balanced Partner Scorecard Data Consolidation Consolidating and automating the collection of the business data reduces sources of error and ensures that the scorecard can display accurate and up-to-date information with a minimal degree of administrative effort. The extended enterprise consolidate data by migrating data to a corporate data warehouse. All data owners can update this consolidated data source, which can be used by the scorecard as well as other corporate and partner applications. A partner scorecard data mart can therefore provide a unified data access point for corporate and partner systems. A data mart’s flexibility in supporting ad hoc query requests provides for sophisticated information retrieval in time to meet pressing business requirements Extract, Transform, and Load (ETL) tools can create monthly updates with minimal human involvement. rics into distinct categories and provide an easy-to-use “drill-down” capability that allows partners to identify areas requiring improvement or attention and restricts access to sensitive data depending on the user’s access. Guided Analysis Tracking performance results without addressing root causes does little to improve channel partner performance. For example, low customer satisfaction might be correctable through customer service training. The scorecard must connect performance objectives to actionable items that actually help partners improve their business results. 2 Foster Cooperation If the relative priorities of an organization and its channel partners are different, even antagonistic, the scorecard will be perceived as an enforcing tool and a threat by the partners. Conversely, if both agree that metrics, such as customer satisfaction and loyalty, are their most important priorities, they will likely co-create value for the customer. The scorecard becomes an effective and efficient tool that helps partners identify areas of improvement and make decisions that contribute the most to meeting local and strategic performance objectives. Dashboard Usability Reporting flexibility and intuitive user interfaces are also key to making the data available and easily accessible. Intelligent use of reporting tools, such as Business Objects, can ensure that partners and corporate users see the same report. In addition, the scorecard’s interface can be designed to group met- BALANCED SCORECARD INITIATIVES • Metric rationalization • Single-point-of-truth database to lower support costs • Link performance data with best practices LATITUDE SOLUTIONS AND SERVICES • Dealer scorecards • Business Objects system integration • Business intelligence dashboards and reporting • Data management and administration